Sustainability - of - Malaysian - Economy - During - Covid - 19 - Pandemic - Saving Vs Spending

Sustainability of Economy during
Covid-19 Pandemic:
Saving vs Spending
The Covid-19 pandemic has significant impact on economies worldwide disrupting

supply chains, reducing demand, and causing widespread job losses. Governments
across the global were forced to implement various measures to protect their
economies.
Group Members:
Dalalin Mayamin
Mohd Hazim Bin Abdul Manaf
Arzlie Bin Amir
Muhammad Hafiszan Bin Mohd Akhir
Covid-19's Impact on the Malaysian Economy
Reduction in Oil Prices
Decreased Demand for
Exports
The drop in global oil prices
Malaysia relies on its export has led to a decline in
industry, with demand Malaysia's oil and gas
dropping during the pandemic industry, which further lowers
and affecting overall the country's GDP. (Gross
economic growth. Domestic Product)
Business Disruptions Tourism Downturn
Lockdown measures and With travel restrictions in

restricted movement affected place, the tourism industry
businesses across all sectors, has taken a massive hit,
leading to closures and job impacting the economy and
losses. employment rates.
Key Factors for Sustainable Economic
Recovery
Balancing Saving and Enhancing Domestic Promoting Sustainable

Spending Strategies Production and Supply Industries and Green
Chains Investments
Highlight the need for a balanced
approach to saving and spending Discuss the importance of Explore the potential of
for sustained economic recovery. strengthening domestic production sustainable industries and green
capabilities and resilient supply investments in driving economic
chains. growth and environmental
sustainability.
Sustainability Aspects in the
Malaysian Economy
Saving
Explore the importance of saving for economic stability and the role of
government policies and incentives in encouraging saving during the
pandemic.
Spending
Analyze the impact of spending in stimulating economic growth, boosting
domestic demand, and creating employment opportunities.
The Importance of Saving in Times of
Economic Uncertainty
1 Creating an Emergency Fund
Building up an emergency fund is crucial during times of uncertainty. It helps cover any
unexpected expenses and prevents debt accumulation.
2 Reducing Debt
Saving during an economic downturn can help to lessen debt and decrease financial burden
and stress.
3 Preparing for the Future
Saving for the future, such as for retirement or education, is important for long-term
financial stability and sustainability.
Effects of Increased Saving on Consumption
and Investment
Increase in Personal Reduction in Investment Encouragement of

Savings Investment into Gold and
With decreased demand and Other Assets
If people are saving more, it may uncertainty in the market,
lead to a decrease in consumer businesses and investors may not Increasing savings may encourage
spending, which can have a spend as much on investments, people to invest in gold or other
negative impact on businesses and which can lead to a weakened assets, which can be a safe hedge
their investments. economy. against economic uncertainty.
Challenges of saving during pandemic
1 Reduced Income
Many faced pay cuts or job losses, making it challenging to allocate funds for savings
amidst financial constraints.
2 Increased Expenses
Rising healthcare costs and other essential expenses made it difficult for individuals and
households to save during the crisis.
3 Uncertain Future
The unpredictable nature of the pandemic created fear and anxiety, hindering the
willingness to save for long-term goals.
Effects of Saving During the Pandemic
1 Importance of Saving 2 Impact on 3 Role of Government
Consumption and Policies and
Understand how saving Investment Incentives
contributes to economic
stability and helps Dive into how increased Explore the measures
individuals weather saving affects consumer implemented by the
financial challenges. spending patterns and Malaysian government to
investment activities. encourage saving during
the pandemic.
Importance of spending to stimulate
economy
1 Boosting Demand
Consumer spending contributes to economic growth by stimulating demand for goods and
services, revitalizing industries.
2 Preserving Jobs
Increased spending supports businesses, helping them retain employees and prevent further
job losses.
3 Fostering Innovation
Spending provides funds for research, development, and innovation, driving technological
advancements and economic transformation.
Challenges of spending during pandemic
Financial Constraints Shift in Consumer Adapting to Digital

Behavior Transactions
Reduced income and uncertainty Changing consumer preferences
make individuals cautious about and the shift to online shopping The rapid transition to digital
spending, affecting overall pose challenges for traditional payments requires infrastructure
economic recovery. brick-and-mortar businesses. development and consumer
education to ensure inclusive
adoption.
Effects of Spending During the Pandemic
1 Stimulating Economic Growth
and Recovery
Analyze how spending initiatives act as a

Impact on Domestic Demand and 2 catalyst for economic growth and aid in
Employment
the recovery process.
Examine the direct relationship between
increased spending, domestic demand, and
employment opportunities. 3 Role of Government and
Consumer Behavior
Understand the role of government

interventions and consumer behavior in
shaping spending patterns during the
pandemic.
Balancing saving and spending for
sustainable economy
1 Smart Budgeting
Developing efficient personal and government budgets that prioritize both saving and
targeted spending.
2 Investment in Critical Sectors
Directing resources towards sectors with high growth potential, innovation, and job creation
to drive sustainable recovery.
3 Promoting Financial Literacy
Empowering individuals with financial knowledge and skills to make informed decisions
that balance saving and responsible spending.
Contrasting Arguments: The Role of
Spending in Economic Recovery
1 Increased Consumer Spending
If people spend more, businesses can generate more profit, and this may encourage investors
to invest more in the market.
2 Boost in Employment Rates
Increased spending triggers demand, which in turn leads to an increase in employment

opportunities.
3 Expansion of the Economy
Spending drives economic growth, which can be important in times of recession, leading to a
stable economy.
Government Initiatives to Support Both
Saving and Spending
Stimulus Packages
The Malaysian Government has announced various stimulus packages to encourage increased
spending and provide assistance to those in need.
Encouraging Investment
Initiatives are being taken to boost investments, leading to long-term economic growth.
Encouraging Saving
The government has also announced plans to encourage saving by providing incentives,
promoting financial literacy, and educating the public about personal finance.
Conclusion: Balancing Saving and Spending
for Sustainable Economic Growth
1 Importance of striking a balance
Neither excessive saving nor spending are ideal during times of economic uncertainty. A balance
of both is needed for the growth and stability of the economy.
2 Collaboration is key
Collaboration between the government, businesses, and individuals is important to ensure

sustainable economic growth and financial stability for all.
3 Adaptation is necessary
Adapting to change is necessary for economic resilience. It is important to adjust personal habits
and investment strategies to suit the changing circumstances.
Conclusion
Achieving a sustainable economic recovery requires a balanced approach to saving and spending. With careful
planning and strategic policies, the Malaysian economy can overcome the challenges posed by the pandemic and
create a brighter future.

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Sustainability of Economy during

The Covid-19 pandemic has significant impact on economies worldwide disrupting

Business Disruptions Tourism Downturn

Lockdown measures and With travel restrictions in

Balancing Saving and Enhancing Domestic Promoting Sustainable

3 Preparing for the Future

Increase in Personal Reduction in Investment Encouragement of

Financial Constraints Shift in Consumer Adapting to Digital

Analyze how spending initiatives act as a

Understand the role of government

2 Investment in Critical Sectors

3 Promoting Financial Literacy

2 Boost in Employment Rates

Increased spending triggers demand, which in turn leads to an increase in employment

3 Expansion of the Economy

1 Importance of striking a balance

Collaboration between the government, businesses, and individuals is important to ensure

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